ARK Invest Commits $15.9 Million to Its Own Bitcoin ETF, Sells BITO Shares

<p>Ark Investment Management LLC has invested $15.9 million
in its recently-listed spot Bitcoin exchange-traded fund (ETF), ARK 21Shares
Bitcoin ETF (ARKB). In a parallel move, the firm sold $15.8 million worth
of shares in the ProShares Bitcoin Strategy ETF (BITO).</p><p>According to Coindesk, ARK Invest demonstrated its
commitment to its Bitcoin-related endeavors by acquiring 365,427 shares of ARKB. This significant purchase was made within the
framework of ARK's Next Generation Internet ETF. </p><p>ARK Invest Shifts from GBTC to BITO</p><p>ARK Invest, led by renowned investor Cathie Wood,
shifted from its previous holdings in the Grayscale Bitcoin Trust (GBTC) in December,
opting for BITO shares in anticipation of the conversion of GBTC into a Bitcoin
ETF. Cathie Wood emphasized the security of an already <a href="https://www.financemagnates.com/cryptocurrency/breaking-the-sec-approves-spot-bitcoin-etf/" target="_blank" rel="follow">approved fund</a> over one
awaiting approval.</p><p>With the approval of spot Bitcoin ETFs in the US,
industry experts anticipate ARK Invest to <a href="https://www.financemagnates.com/terms/e/exchange/">exchange</a> some of its BITO shares for a spot Bitcoin ETF. This move underscores ARK's proactive approach to aligning its
investment portfolio with the evolving landscape of cryptocurrency and ETF
markets.</p><p>Recently, BlackRock and Ark Investment Management
<a href="https://www.financemagnates.com/cryptocurrency/bitcoin-etf-battle-blackrock-ark-cut-fees-amid-false-approval-alert/" target="_blank" rel="follow">reduced their fees for spot Bitcoin ETFs</a> ahead of the funds' approval. This
reduction in fees was initiated by BlackRock's iShares <a href="https://www.financemagnates.com/terms/b/bitcoin/">Bitcoin</a> Trust and Ark
21Shares Bitcoin ETF. </p><p>BlackRock's iShares Bitcoin Trust lowered its fees
from 0.30% to 0.25%. ARKB followed suit, reducing its fees
to 0.21%, down from the initially proposed 0.25%. This reduction in fees
followed a <a href="https://www.financemagnates.com/cryptocurrency/secs-twitter-account-compromised-in-false-bitcoin-etf-announcement/" target="_blank" rel="follow">misleading announcement</a> on the SEC's social media ahead of the
official approval of the spot Bitcoin ETFs.</p><p>Gearing Up for Spot Bitcoin ETFs</p><p>The fee cuts from BlackRock and Ark signaled a
heightened sense of urgency to capture a substantial share of the capital
inflow expected from the spot Bitcoin ETFs. This decision could significantly impact
the crypto landscape, allowing institutional and retail investors to access
Bitcoin without direct ownership.</p><p>Meanwhile, major trading platforms Coinbase and
Robinhood experienced a <a href="https://www.financemagnates.com/cryptocurrency/coinbase-and-robinhood-face-market-volatility-post-sec-approval-of-bitcoin-etfs/" target="_blank" rel="follow">decline in the prices of their stocks</a> following the launch of the
spot Bitcoin ETFs in the US, raising concerns about the impact of these funds on
the broader crypto market.</p><p>As the custodian for most spot Bitcoin ETFs approved
by the SEC, Coinbase plays a pivotal role in the evolving crypto landscape.
However, the approval of these ETFs introduces the risk of investors being
drawn away from Coinbase's platform, intensifying competition in the crypto
market.</p>

This article was written by Jared Kirui at www.financemagnates.com.